What is Blockchain? Part 1

Blockchain technology may revolutionize the world. A decision management expert Dan Selman promises to explain the technology in his blog-posts. The Part 1 provides a simple introduction with a smart contract example: If partner A lends $100 to partner B with the promise that partner B will pay the money back in 30 days with 10% interest, then this promise can be coded as a smart contract that executes automatically, moving money from partner B’s account to partner A’s account (plus interest) 30 days after the loan. The movement of money will occur automatically, and both the ledgers of A and B will be updated and will reflect all the transactions that have occurred. This automation may lead to cost savings for both partner A and B as they no longer have to perform manual settlement of the loan and they both have a ‘single source of truth’ (the synchronized ledger) that encodes the details of their trading relationship.”

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